FIXED INCOME MARKETS
Money Market
System liquidity opened much higher at ₦584.37 billion compared to ₦315.72 billion recorded yesterday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) fell by 118bps and 150bps to 14.90%, and 15.60%, respectively.
Outlook: Interbank rates is expected to stay depressed in the interim.
Treasury Bills
The treasury bills market remained calm, despite yesterday’s OMO auction. Market closed on a flat note, as average mid-yield stayed unaltered at 8.17%.
Outlook: We expect activity to gradually stir tomorrow, as liquidity improves.
FGN Bonds
Today’s market was mixed, with bids and offers noticed majorly on the on-the-run papers, especially the 2038 and 2053 maturities. Overall, market closed mixed—to-bullish, with average mid-yield rate 14.95%.
Outlook: We expect similar session tomorrow.
Eurobonds
The Eurobonds market was quietly mixed for the most part of the session, as participants adjust to trade cautiously pending the next significant data point for a more reliable forecast. In Africa, Angola terminated its membership with the OPEC after disagreements over its oil production quota. Overall, Nigerian’s curve concluded the session on a bearish note, as average mid-yield increased by 6bp to settle at 9.60%.
Outlook: We expect the next hurdle for market to be centered on the US PCE Price Index.
Equities
The Nigerian All-Share Index appreciated by 1.21%, to settle at 74,289.02 points in today’s session, driven by continuous buyside interests for many banking tickers, including TRANSCORP (+10.00%). Thus, YTD performance settled at 45.95%, nudging the total market capitalization at ₦40.65 trillion. Trading activity was positive, as total volume increased by 37.19%, while total value traded rose by 1.54%.
Further, the total volume and value traded were led by ABBEYBDS with 89.45 million units and NESTLE ₦2.65 billion. The Banking and Industrial Indices increased by 1.36% and 0.01%, respectively, while the consumer goods and oil & gas Indices fell by 0.15% and 0.05%.
Outlook: We expect a similar session tomorrow
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 0.85% (or ₦7.30) to $/₦861.91 from $/₦854.61 recorded yesterday.
Outlook: The volatility is expected to persist in the interim.
Commodities
Oil prices fell by more than $1 a barrel today after Angola announced it is leaving the Organization of the Petroleum Exporting Countries (OPEC). Brent crude was reported at $73.57 per barrel, and West Texas Intermediate (WTI) at $73.58 per barrel, as at printing time. Gold range-bound as market focuses on U.S. economic data. Thus, Gold prices increased to $2,052.50 per ounce from the previous day, as of printing time.
Outlook: We expect oil prices to remain volatile in the interim.
